Adoption and implementation of e-government within local government organizations are influenced by many external factors. These factors are often perceived as forces or pressures that influence local government decisions to adopt and implement the initiatives. This study uses the concept of coercive force from institutional theory to explain those external pressures influencing e-government adoption and implementation within a local government in Bali province in Indonesia. An interpretive case study approach is adopted to empirically understand the external pressures on local government adoption and implementation of e-government. Our findings show that four institutional external forces, central government, regulations, local citizens and limitation in financial resources, have strongly influenced the regency to adopt and implement e-government systems to improve their administration and services performance.